Negotiate Employment Agreement

The employment agreement establishes a clear understanding of the obligations, rights, and duties of both parties. Addressing these areas in the agreement will reduce potential misunderstandings, ensure stability, and provide quality control. Identifying the Association Executive’s responsibilities in the agreement can help create a more stable environment because the expectations are clear and agreed upon.

Your association will want to contact legal counsel for assistance with drafting and finalizing the employment agreement. The agreement may include the following elements:

• Title and job description – Include objectives, responsibilities, reporting relationships, supervision of activities, and performance standards for the position. In addition, attach a job description as an appendix to the agreement.
• Management – This clause provides the AE authority over all staffing (hiring, terminating, promoting, discipline) matters within the association’s policies and budget.
• Performance commitment – Include a clause where the AE agrees to devote all their business time, attention, and energies exclusively to the association, and to give their best efforts and skills exclusively to performing their duties.
• Compensation – Includes base pay, performance reviews (criteria, procedures, and timetable), and how merit increases or bonuses will be determined. Compensation is based on the position, candidate experience and education, association size, and location.
• Benefits – may include:
  • life insurance, health insurance (employee and family), hospitalization insurance, short-term and long-term disability
  • deferred compensation, pension plan, 401(k), IRA, or SEP
  • paid vacation, holiday, sick, and personal days
  • reimbursement for relocation expenses
  • expense reimbursement (what Association will or will not cover):
  • business travel (business or first class), spouse travel (may specify expense cap), VIP lounge memberships, and entertainment expenses
  • automobile allowance
  • cellular phone and monthly charges
  • membership dues in professional associations, trade groups, and related organizations
  • professional educational courses, seminars, or continuing education
  • financial planning or tax preparation services
  • country club, health club, or luncheon club memberships

  
  
  View HR Toolkit - For Association Leadership to see additional HR tools to assist association presidents and their AEs.